Buying a condo for investment is one real estate investment strategy we consider a smart move. However, to make it your smartest move, there are a number of features to consider when condo investing.
When you look into the condominium definition, real estate investors like to call it a home without a yard. A condo investment is a private residence split up into a number of different units. Here’s the catch: all these units share common areas like gyms, pools, and yards.
With that, these are the 6 crucial features you should consider when you are buying a condo for investment.
6 Condo Investment Features to Consider
A Must-Read: Here Is What You Should Take Into Consideration Before Buying a Condo for Rent
Age Is Not Just a Number When Buying a Condo for Investment
When buying a condo for investment, you may find yourself in a condominium community that has age restrictions. Age-restricted communities often cater to the older population, so they are marketed as either retirement communities or active adult communities.
All that goes on in this condominium neighborhood will be for the likes of the elderly. Often, development will offer social, intellectual, and personal enrichment activities that the older population will enjoy. They may even have set rules as to how many nights children or grandchildren may stay per year.
If you have the elderly in mind for your tenant population when buying condos to rent, then these age-restricted communities are for you. However, age-restricted neighborhoods are a no-no if a retirement home setting is not what you had in mind when buying a condo for investment.
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The Common Areas: When Sharing Is Caring
Shared common areas are the backbone of condo investment. Buying a condo to rent comes with attractive common areas your tenants can enjoy and are committed to paying for. That is primarily how you can set the price you can profit from when asking yourself “how much should I charge for rent?”
The common areas a condominium contains are magnets to potential tenants. Having a boat dock or marina will attract those with a passion to sail. A thriving garden is perfect for flower or plant lovers. A set gym is ideal for tenants who strive to lift some steel.
These features are what make up a condominium development and really set it apart from the rest. Tenants love a unique condo investment property, and having an investment condo in a one-of-a-kind area only adds to the desire to live there. Make sure to keep these common areas in mind when you are buying a condo for investment.
How-To: Follow These Steps to Learn How to Buy a Condo
A Place to Put a Car
Set parking may not seem like a big deal in the real estate business, but that could not be farther from the truth. Parking is essential when buying a condo for investment. We can all recall a moment of time where inconvenient parking led us away from going to a restaurant. No more spots in front of the shopping mall pushed us to not even want to go anymore. We can agree that parking is important.
The best place to buy a condo will have on-site parking areas in places like a parking garage, underneath the condominium investment property, or even adjacent to each building. Each one of the units in the condo community is normally assigned a specific number of parking passes. This could be based on something like the number of bedrooms in the condo investment.
Quick Tip: Stay on the lookout for gated parking areas staffed by security personnel when buying a condo for investment. Added property security features are considered extremely valuable to both condo investors and tenants.
Safe and Secure with Property Security
Tenants wish to feel safe in the community they are a part of. The best security system for renters includes things like:
- Gated parking areas
- 24/7 security guards
- Camera and video surveillance
- Locked exterior doors
- Exclusive locked community facility access
- Lit parking areas and hallways (no one likes to walk in the dark)
- Community watch programs
All of these aspects play a role in proper home security that both you and your tenants will love. A safe community will instantly draw both condo investors like you and renters. Consider just how safe the condo community is when you are buying a condo for investment.
Learn More: 5 Security Improvements That Will Give Investors the Best ROI in Real Estate
Life of the Party: Social Opportunities
Being a part of a condo community is like living with a family you never knew you had. When it comes to your tenants, the community they are a part of is like a world of its own. Communities that have scheduled events give residents the opportunity to connect and socialize with one another. These events could include group dinners, book clubs, golfing competitions, or even pool parties.
Strong condo communities may even take it a step further and take advantage of nearby attractions. Museums, sporting competitions, or concerts are all great activities to get involved in. Feeling like you are exclusively involved in something gives value to the community you are a part of. When buying a condo for investment, keep an eye out for the “TLC” the community brings for its residents.
Sweet Shiny Steel Lovin’: Appliances
Stainless steel refrigerators or microwaves are heavens to a renter. Having upgraded appliances in a condo rental investment unit adds value to the investment property as a whole. Not to mention how new appliances can be considered one of the best improvements for home valuation. This can lead to a higher rate of return which is heaven to condo investors.
With Mashvisor, you can get an idea of what those return on investment rates are with the help of an investment property calculator. With this tool, you can factor in such expenses to ensure they don’t cut into the returns. New stainless steel appliances are extremely desirable when buying a condo for investment. The last thing you want to do is just overlook these features!
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Read into It: How to Calculate the Rate of Return on a Rental Property
Making Money in Real Estate When Buying a Condo for Investment
There may be questions going through that condo investor head of yours. Is buying a condo a good idea? How about “is investing in condos for rental income” even possible? Is investing in a condo a good idea? The answer to those questions will not have a right or wrong answer. However, anything is possible when owning a rental property.
These 6 crucial features play a part in how much rental income you can receive from a condo rental investment. Look for them when buying a condo for investment to assure yourself a stable money making real estate investing path.
A Glimpse at the Other Side: Why Buying A Condo For Investment Might Be a Bad Idea